Yahoo Finance Is Trakm8 Holdings PLC's (LON:TRAK) CEO Salary Justified?
John Watkins is the CEO of Trakm8 Holdings PLC (LON:TRAK). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Trakm8 Holdings
How Does John Watkins's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Trakm8 Holdings PLC has a market cap of UK£9.2m, and reported total annual CEO compensation of UK£285k for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£285k. We examined a group of similar sized companies, with market capitalizations of below UK£154m. The median CEO total compensation in that group is UK£249k.
So John Watkins is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Trakm8 Holdings has changed from year to year.
Is Trakm8 Holdings PLC Growing?
Trakm8 Holdings PLC has reduced its earnings per share by an average of 105% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 20% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Trakm8 Holdings PLC Been A Good Investment?
Since shareholders would have lost about 72% over three years, some Trakm8 Holdings PLC shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for John Watkins is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Shareholders may want to check for free if Trakm8 Holdings insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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